Chapter 9 CONCLUSIONS AND FINDINGS

Transcription

1 Chapter 9 CONCLUSIONS AND FINDINGS 9.1 Introduction 9.2 Conclusions of the Study General Conclusions Specific Conclusions Performance of Co-operative Dairies in MMR Mahanand Dairy 9.3 Findings of the Study General Findings of the Study Summary of findings related to review of literature Summary of findings related to dairy in general Summary of findings related to co-operatives in India Objective-wise Findings Specific Findings Summary of findings related to co-operative dairies in MMR Summary of findings related to Mahanand 9.4 Conclusion

2 Chapter-9 CONCLUSIONS AND FINDINGS brand, from insufficient production to sufficient production, from rationing to plentiful availability; from loose unhygienic milk to milk that is pure and sure, from Verghese Kurien 9.1 Introduction The present research work is a study of marketing performance of cooperative dairies in MMR. It particularly details the performance of Mahanand dairy. The study is based on data and information collected from primary as well as secondary sources. The data collected were processed, analysed, interpreted and valid inferences were derived. This chapter aims to give the detail descriptions of the defined attempts, accounting at what extent the different objectives of the present study have been accomplished and whether the hypotheses are accepted or not. 9.2 Conclusions of the Study The present study addresses to the performance of dairy industry in India. The study is a comprehensive approach to evaluate the performance of co-operative dairies in MMR and Mahanand dairy with the help of physical, financial and marketing parameters. The conclusions drawn are broadly classified into general conclusions and specific conclusions General conclusions The comprehensive and in-depth study helped in drawing some valid conclusions. These conclusions are drawn on the basis of data analysis, facts and information gathered and logical reasoning. The conclusions drawn are classified in to 361

3 two categories; general conclusions and specific conclusions. The general conclusions include summary of base of this study which includes review of literature, overview of dairy and co-operative sectors. 1. Review of literature was majorly classified into five categories, these were studies related to general dairies, co-operatives, co-operative dairies, marketing practices in co-operative dairies and Mahanand. 2. It is inferred from the review of literature that not much work is done in the area of application of marketing practices in co-operative dairies other than Amul. 3. Mahanand had remained unexplored in the area of marketing strategies, CRM, value chain management and other recent marketing approaches. 4. The world milk production shows an annual improvement of 0.8 percent in The CAGR reported is 2.1 percent. The milk production though is increasing there is a decrease in the growth percent of milk. 5. production of cow milk shows an increasing trend. However, there is a decline in the growth percent of cow milk. 6. Buffalo milk has a share of 12.8 percent in world milk production. It also shows a declining trend in terms of growth percent. 7. There is an increase in demand for dairy products in the world market. To fulfill this increasing demand milk production by all species at all levels need to be increased. 8. Milk being a perishable product is consumed locally. International market has a great potential for value added dairy products. Some of the popular milk products are WMP, SMP, butter, cheese, condensed milk and whey products. 362

4 9. India is world leader in milk production, however it plays a very negligible role in international market which is dominated by classic value added dairy products. 10. The credit of dairy development in India goes to the co-operative movement lead by NDDB, which is popularly know -operative structure which was replicated throughout the India for dairy development. 11. The operation flood programme was successful and it definitely made India flood with milk. It helped in organizing small milk farmers and facilitated to generate secondary source of income for them. In due course of time this secondary sources become primary occupation for many farmers. 12. The Operation Flood programme was a major policy development, which provided the missing market link between the urban milk consumers and rural producers through a network of Co-operatives. Milk production grew from 22 million tonnes in 1970 to nearly 69 million tonnes in With million tonnes milk production in the year , India continues to remain world leader in milk production. 14. The per capita milk availability has improved up to 302 grams per day. 15. Dairy development in India is not uniform. There are some states which are progressive and doing well in dairy development and there are some states which are very backward in dairy development. 16. Uttar Pradesh is the highest milk producing state and the per capita availability of milk in the state is 310 grams. 17. In Punjab the per capita milk availability is 945 grams, which is much above the national standard. 363

5 18. India has a very large milch cattle population base constituting 304 million milch cattle. The problem lies with the low productivity of these cattle. 19. The available feed resources for the livestock population is falling short which is affecting the nutritional requirement of cattles which further affects the productivity of milch cattle. 20. There is estimated shortfall of 59.9 million tonnes for the green fodder and 19.9 million tonnes for dry fodder. This shortfall is likely to increase by 2015 to 63.5 million tonnes of green fodder and million tonnes of dry fodder. 21. India is the largest exporter of dairy products and exported 36, MT of dairy products to the world for the worth of Rs crores during the year Maharashtra has performed well in co-operative dairy development. However, dairy development in the state is not balanced. Western part of Maharashtra is doing extremely well as compared to Marathwada and Vidarbh. 23. Areas like Marathwada and Vidarbh require special attention for dairy development. These areas have problem of water scarcity hence grasslands and pastures are vanishing. This affects agricultural activities including dairy. 24. There has been a gradual improvement in overall milk production in the state; from million tonnes in to 8.73 million tonnes in This can be owed to policy initiatives undertaken and improved facilities provided by the government. 25. The total milk production of Maharashtra has increased but as compared to all India its share is declining. This shows that as compared to major players the development of dairy in Maharashtra is not at par. 26. Per capita availability of milk has improved in Maharashtra. However, a comparison of Maharashtra with all India per capita availability of milk shows 364

6 that Maharashtra has never been able to match up the national standard. This difference is increasing year wise which is not at all satisfactory. 27. Overall milk procurement in Maharashtra has improved. A closer look at the individual performance of different types of dairies shows that the procurement by government dairy is gradually declining. The performances of co-operative and private dairies are improving. 28. Milk distribution in Maharashtra shows an overall improvement. The performance of government dairy is declining and the performance of cooperative and private dairies is improved. 29. A comparison of co-operative and private dairies shows that in coming times private dairies are going to give tough competition to co-operative dairies also. 30. Milk conversion in Maharashtra shows a very inconsistent performance. There is a net fall of percent in milk conversion in Maharashtra. 31. There is vast disparity amongst different regions in terms of dairy development in Maharashtra. Pune region is most successful in dairy development in Maharashtra with largest number of chilling centres, processing dairies and SMP plants. 32. Co-operatives are found in every walk of rural life from milk, sugar, wheat, fisheries, fertilizers, bank to cotton, co-operatives are every-where. It is numerically the largest movement in World. 33. The cooperatives have come to be recognized as one of the most important economic and social org rural development. 34. Co-operative is a state subject and hence state-wide disparities in co-operative developments are clearly noticeable. 365

7 35. The importance and role of co-operatives in Indian economy is reflected by the quantum of finances involved in the entire setup. 36. The history of co-operatives in India is very old. In ancient India it took four principle forms; Kula, Grama, Sreni and Jati. The enactment of Co-operative Societies Act, 1904 was the official legal beginning of co-operatives in India. After independence, co-operatives as means of social and rural development 37. NCUI is the apex organization of co-operative movement in India. It comprises of cooperative institutions at national level, state level and multistate cooperative societies representing all sectors of the Indian cooperative movement. 38. The National Centre for Cooperative Education (NCCE) is the education and training division of National Cooperative Union of India (NCUI). It provides cooperative education to the elected Chairmen / Directors and employees of Cooperative Organizations on a regular basis. 39. The National Council for Cooperative Training (NCCT) is responsible for organizing, directing, monitoring and evaluating the arrangements for cooperative training and human resource development for the co-operative sector. 40. The increase in number of co-operative societies is very impressive. As of the total numbers of societies registered were thousand. 41. The growth in membership of co-operative societies has reached up to millions in The success of dairy co-operatives has not only made farmers economically stable but has also catered to the needs of urban population by providing quality milk throughout the year. 366

8 43. Co-operative dairy development programme is the most successful programme of India. As of there are 1,44,729 dairy co-operatives with a total membership of millions. The total share capital of dairy co-operatives at all level is Rs million with total working capital of Rs. 21,270.4 million and reserves with value of Rs million. The total milk procured by co-operatives in is 95,58,620 thousand litres. The total turnover by the co-operatives during this period is Rs. 1,44,838.9 millions. 44. The performance of Indian dairy co-operatives is measured with the help of its performance in terms of number of societies, membership, milk procurement and milk distribution. 45. There has been steady progress in the growth of co-operative dairies. It shows a CAGR of percent. 46. State wise distribution and growth of dairy co-operatives in India shows imbalanced development. States from eastern region like Nagaland, Jharkhand, and Tripura have very less number (less than 100) of dairy cooperatives. Whereas the performance of states from northern and western region is much better. 47. The study also reflects improvement in total membership of co-operative dairies. It shows a CAGR of percent. 48. There is huge variation in the development trends of co-operative numbers as well as membership. This reflects the imbalanced development performance of dairy co-operatives. Some states are well developed, some are developing and some are under developed. 49. It is heartening to see that there is continuous improvement in the procurement of milk by co-operative dairies. The procurement of milk by co-operatives has improved from 10.3 mlpd in to mlpd in There is a net improvement of percent in procurement of milk by co-operatives. 367

9 50. Dairy Cooperatives account for the major share of processed liquid milk marketed in the country. The milk distribution by co-operatives has improved from 9.4 mlpd in year to mlpd in the year There is a net improvement of percent in milk marketing by co-operatives. 51. The results reflect the picture that eastern states have not performed well in dairy co-operative sector. The states of North, West and South are doing better. 52. Co-operation is a State subject, i.e. falling within the scope of State legislation. The working of co-operative movement in Maharashtra State Co-operative Societies Act, The co-operatives in Maharashtra have a political, historical, social and cultural heritage. It is predominantly strong in Western part of Maharashtra. 54. In Maharashtra, Pune is most successful in co-operative development. 55. Dairy co-operatives in Maharashtra show an overall improvement in respect to increase in number of societies, increase in membership, increase in milk procurement and distribution. Dairy co-operatives are also well equipped with dairy units to facilitate flow of material and information. 56. Dairy co-operatives are facing the problem of milk crunch in Maharashtra. Advent of private dairies has taken much share of the co-operative dairies. 57. The distribution of milk depends on the milk procured by the dairies. As there is inconsistency in the procurement of milk, same is reflected in the total distribution of the milk. 368

10 9.2.2 Specific Conclusions The specific conclusions of the study exhibit the gist of interpretations and inferences. It covers the topics of co-operative dairy marketing in MMR and performance of Mahanand dairy Performance of co-operative dairies in MMR 1. The universe of present study is MMR. Cluster sampling method was adopted to pick up samples. MMR has eight municipal corporations. These Municipal corporations were taken as eight clusters for sampling. The population of these areas was the base of sample size. Total 614 consumer respondents and 88 dealer respondents were selected for primary survey. 2. The independent variables used for survey are area, gender, age, income, occupation and family size. The independent variables used for dealer survey are area and experience in the industry. 3. The present study shows that in MMR the most popular milk type is cow milk. 4. The primary survey shows that organized milk market is more dominant in MMR with 74 percent of market share. 5. However the secondary data shows that organized milk market has 64 percent of market share. 6. People have different reasons for use of loose milk the most popular reason is they are satisfied with the existing mode of milk supply from their local milkman. There is a firm belief that loose milk is the purest and unadulterated form of milk. 7. The performance of Aarey dairy is retreating in MMR. The primary survey shows that it exist only in south Mumbai region. 369

11 8. Private dairies are making their place in MMR. There are more than eighty brands in this category. In the liquid milk category Mother Dairy and Govardhan are getting good response from the market. 9. Co-operative dairies are very successful in MMR with approximately 50 percent of market share. 10. The prominent co-operative players in MMR milk market are Amul, Gokul, Mahanand and Warna. 11. The secondary sources indicate that amongst the co-operative players Amul is most successful with approximately 16.5 percent share of milk market. 12. Amul is the market leader in the category of toned milk, Gokul in the category of full cream milk and Mahanand in the category of cow milk. Co-operatives thus captures the entire MMR milk market. 13. There is significant effect of gender, age, occupation, area etc on respondents which affects their choice of branded or non-branded milk. Out of six hypotheses five are accepted and one hypothesis was rejected, therefore overall basis it can be said that people do differ in their perceptions for selection of milk. This difference can be because of their gender, occupation, age group etc. 14. The study of consumer behaviour towards milk shows that while purchasing Milk is a very regular product for them and they buy it on the basis of their immediate requirement. There is a great deal of dependency and trust on the milk suppliers for quality of milk. 15. There is significant difference in the rankings given towards consumer behavior towards milk by respondents. different offerings in the market. In his own capacity he has strong reasons for the selection of a particular type of milk. 370

12 16. AMUL has got the highest level of awareness in liquid milk market. This not only provides it a strong place in the memory but also results in purchase decisions. This is most effective if it is an impulse purchase. 17. AMUL remains the most preferred milk brand in the market. AMUL with its quality and diversified product range, effective promotion and strong distribution has been able to become the first choice of its consumers. 18. AMUL is not only the oldest but also the highest purchased brand in MMR. 19. The performance of co-operative dairies in terms of TOMA, brand preference and brand purchase shows that area-wise, age-wise and income-wise there is difference in their performance. 20. Overall, consumer oriented results of performance analysis of co-operative dairies shows that Amul is most successful in all the parameters selected. 21. The market oriented results of performance analysis of co-operative dairies shows that Amul has performed better in all the selected parameters. 22. The financial results of performance analysis of co-operative dairies in terms of revenue analysis show that Amul has surpassed all the other dairies. 23. The result of ratio analysis shows that Gokul has achieved highest net profit ratio and current ratio. Good net profit implies that Gokul has shown better efficiency in managing all its activities. It has good control over its costs and is better equipped to face bad economic conditions. Good current ratio indicates that Gokul has optimum liquidity position with optimum level of trading. This also implies that the dairy is in a good position to pay off its current liabilities. 24. Amul has achieved stable stock turnover ratio. to standard signifies efficient management of inventory. 371

13 25. The net worth of Amul is highest amongst all the co-operative dairies. It implies good financial health of the dairies. In case of any kind of contingencies the dairies can meet up the expenses Mahanand Dairy 1. Mahanand is the only federal dairy of Maharashtra and is responsible for marketing of milk and milk products of its member unions. 2. Mahanand established processing dairies at various parts in Maharashtra to achieve uniform development of co-operative dairies in various parts of the state and equitable distribution of benefits to member milk unions. 3. Numerically, Mahanand is very large and represents the entire dairy cooperative movement of Maharashtra. There are primary co-operative societies, 103 member unions, 25 lakh members and a total milk handling capacity of llpd. 4. Mahanand has a very well recognised brand name and logo. 5. It follows a three tier co-operative structure. The first level comprises of milk procurement system. The second level facilitates the movement of milk from PDCS to federal dairy with the help of chilling centres and effective transportation system. The third level, Mahanand takes care of final processing and marketing. 6. Mahanand is a co-operative structure and is owned by its farmer members. The representatives of members elect their Board of Directors. Board of Directors elect chairman and vice-chairman. Thus the overall functioning of Mahanand is under the supervision of its members. To safeguard the interest of co-operative members government appoints its representative as the Managing Director of Mahanand. Managing Director in co-ordination with Chairman and heads of the functional department of Mahanand takes care of the regular functioning of the unit. 372

14 7. The overall working of Mahanand is divided into twelve functional departments. This division of functions helps in defining the responsibilities and accountability clearly. 8. Mahanand has a very well defined supply chain management. Looking at the increasing demand of milk more facilities should be developed for smooth flow of resources. 9. Mahanand follows integrated management system to ensure quality control in overall functioning of the unit. The organisation has been approved by ISO9001 and HACCP quality accreditation. 10. The challenges faced by Mahanand at procurement level are perishability of milk, poor management of PDCS, lower productivity of cattle, low returns and lack of automation at grass root level. 11. The challenges faced by Mahanand at processing level are availability of milk, low quality standard, lack of co-operation, automation and multiple processing units. 12. The challenges faced by Mahanand at marketing level are increasing competition, dominance of unorganized sector, lack of co-operation, inadequate promotion and distribution. 13. The SWOT analysis of Mahanand shows that there are some inherent strengths of Mahanand which makes it a strong and competitive unit. There are some weaknesses also which affects the performance and position in the market. The analysis of strength and weaknesses show that Mahanand can effectively seize the opportunities of the market and efficiently overcome the challenges. 14. Mahanand provides a wide range of product-mix in the market. It is very famous for cow milk. In addition it provides product like curd, ghee, paneer, 373

15 chaas, lassi, flavoured milk and Shrikhand. In 2013, it also started to sell milk in tetra-pack. 15. As per the primary survey, 16.6 percent of the respondents are using Mahanand milk. There is a variation in usage of Mahanand milk across different clusters of study, different income-groups and genders. 16. The response towards Mahanand milk product is better as 25.2 percent of the respondents use it. The major reason for non-usage of Mahanand milk products is poor reference value and unawareness about the product. Those who are using Mahanand products buy it for good quality and easy availability. 17. Amongst other milk products of Mahanand Lassi is most popular and Chaas is least popular. 18. The study of customer satisfaction towards different milk products of Mahanand shows that the respondents are most satisfied with quality and least with promotional measures. 19. Being a co-operative unit the idea behind pricing is a balance between proper returns to the farmers and providing milk at competitive prices to the customer. 20. Promotion is one of the important fronts where Mahanand is lacking. Promotion can be used to achieve different objectives. Mahanand is limited for a specific group of customers. It needs to develop effective promotional measures to attract the customers and create good image for itself. 21. The study shows that area- Many of the geographical markets are remain untouched. The distribution channel of Mahanand needs to penetrate into new as well as existing markets. 374

16 22. Some of the recent developments taken place in Mahanand is noteworthy. It is definitely trying to cope up with technological and other advances taking place in the market. 23. Despite of all these developments Mahanand is way behind the market leaders. It is the need of the time that the unit should take some serious and proactive steps to meet the changing pace of the dairy market. 24. The study of TOMA, preference and purchase of Mahanand shows that there is difference in the responses as per area, age and income of the respondents. However, the collective result shows that Mahanand occupies third position in MMR on the basis of consumer oriented results. 25. The overall satisfaction towards Mahanand milk is coming in the range of 66 percent to 80 percent which shows that customers are satisfied with Mahanand milk. There is significant difference in the satisfaction shown by the respondents across age, occupations and incomes. 26. The sale of Mahanand is showing a declining trend. Increasing competition, scarcity of milk and reducing popularity has affected the performance of Mahanand. 27. Dealers of Mahanand show moderate satisfaction towards different marketing parameters of Mahanand. Area-wise satisfaction level is different however, as per the experience of dealers they show same type of response. 28. The study shows that net profit tends to be very sensitive to the movement of gross profit. The only year depicts some contrary trends. These observations lead us to conclude that the operating effectiveness loses stability in the long run. 29. Shortage of short term funds can have an adverse effect on the operational efficiency of the firm. A current ratio of 1:1 at least is therefore required. It shows that Mahanand is able to fulfill its short term liabilities. 375

17 30. Debt equity ratio of Mahanand is indicative of a very satisfactory safety margin for the long term creditors. It also suggests that the organization can raise additional funds as there is less burden of fixed interest payment. 31. It is important that there should be stability in gross margins as they are required to take care of operating expenses. The drop of gross profit ratio in 2014 up to one is an indicator of crunch for operational and administrative expenses in Mahanand. 32. Decline in the net profit ratio of Mahanand can be taken as an indicator of inefficiency in controlling its operating expenses, inefficient management or simply increasing competition in the market which Mahanand is not able to face effectively. 33. Analysis of revenue trends of Mahanand leads to conclude that the operating effectiveness loses stability in the long run but at the other back end expenses play a crucial role in deciding the amounts available at the disposal of the stakeholders and hence magnifies the impact of gross profit. The amounts seem to be controlled by many dynamic factors and hence the bottom line seems to lose stability in the long run which does not show a good picture even for a welfare organisation. 34. The net worth of Mahanand is indicative of one positive point i.e. the cooperative has not yet seen contingencies which compel the society to utilise its reserves for honouring the liabilities. 35. Overall, the financial performance of Mahanand is not satisfactory. Revenue analysis of Mahanand shows a very inconsistent trend. Ratio analysis was also done to evaluate the profitability, liquidity and managerial efficiency of Mahanand. Some of the indicators perform satisfactorily while others show a very inconsistent performance. 376

18 9.3 Findings of the Study The findings of the study are broadly grouped in to two categories: general and specific. General findings include gist of literature review, facts and information related to dairy industry and co-operative sector. The findings are based on valid conclusions drawn after detail study of the subject. Specific findings include facts, information and results of analysis undertaken for co-operative dairy marketing in MMR and performance of Mahanand dairy (Chart 9.1). Chart 9.1 Findings of the Study Findings of the Study General Findings Objectivewise Findings Specific Findings Based on Review of Literature Dairy Industry Co-operative Sector Co-operative Dairies in MMR Performance of Mahanand Dairy General Findings of the Study The study is a major research work done on co-operative dairies in general. To understand the subject effectively and execute this research work efficiently some base work in the form of review of literature and overview of dairy and co-operative sector was carried out. On the basis of this general findings were categorized into three groups namely findings related to review of literature, findings of the dairy industry and findings related to co-operative sector in India. 377

19 Summary of findings related to Review of literature 1. A considerable amount of work has been done in the area of dairy. Dairy is an important topic of research on national as well as international front. 2. The topic of research in dairy has mostly covered the sub areas like husbandry practices, milch cattle breeding programmes, feed and fodder, changes in the regulations, role of women to ICT application in dairy industry. 3. A good quantum of work on co-operative sector has also been done. The areas covered under co-operative studies are reforms, growth, role, importance and problems of co-operative sector in India. 4. Dairy co-operative is a very well researched topic in India. Most of the work on dairy co-operatives has been done to map the success and effectiveness of operation flood programme. In the later period research has been done to study the viability of dairy co-operatives in India. 5. Studies related to application of marketing practices in dairy co-operatives have also taken place for some dairies. Amul is the role model of co-operative dairy in India. A good chunk of research on various different aspects of Amul has taken place in India as well as abroad. 6. Studies on co-operative dairies other than Amul are very limited in number. 7. Research on Mahanand is also very inadequate in number. The studies on Mahanand generally cover the aspect of labour practices, organization and management, production, quality control etc. 8. There is a clear research gap in the area of marketing strategies, supply chain management, value chain development for co-operative dairies in general and Mahanand dairy in particular. 378

20 Summary of findings related to Dairy in general 1) The world milk production has improved by 0.7 percent in the year 2013, from 762 million tonnes in 2012 to 767 tonnes in 2013, as reported by FAO. 2) 09 was million tonnes. 3) The compound annual growth rate of milk production is 2.1 percent. 4) There is an overall improvement in milk production by all the species. 5) Species wise cow milk has maximum representation in the world milk production. 6) In the year 2009 the total share of cow milk in world production was 83.5 percent followed by buffalo milk with 12.8 percent. 7) The annual growth rate for cow milk in the year 2009 was 0.6 percent, which is the lowest in the last twelve years. The CAGR is 2 percent. 8) The annual growth rate of buffalo milk is 3.1 percent and CAGR is 3.3 percent. 9) Amongst all the species of milk animals buffalo milk has attained the highest growth rate in ) USA is the largest producer of cow milk in the world with 85,874 million tonnes. However, it shows a fall in annual milk production by 0.3 percent. 11) New Zealand has shown the highest annual growth of 8.7 percent in cow milk production in the year

21 12) China has shown the highest compound annual growth of 17.2 percent in cow milk production in the year ) India shows a 3.3 percent of annual growth rate and 4.3 percent of compound annual growth rate in cow milk production in ) India ranks first in It shows an annual growth of 3.3 percent and compound annual growth rate of growth and 3.3 percent of compound annual growth rate in the category of buffalo milk. 15) India continues to be the largest milk producing country in the world with million tonnes milk production in the year ) The per capita milk availability in India has reached up to 302 gms per day in , which is better than the world average of 294 grams per day. 17) As of Uttar Pradesh is the highest milk producing state with percent share followed by Rajasthan, Andhra Pradesh, Gujrat and Punjab with respective10.53, 9.64, 7.79, 7.34 percent share in all India milk production. 18) The comparison of per capita availability of milk in shows that Punjab is the leader with 945 grams of milk available per person per day, followed by Haryana (720 grams), Rajasthan (539 grams), Himachal Pradesh (447 grams) and Gujarat (445 grams). 19) Maharashtra stands on seventh position in terms of milk production in India with 8.73 million tonnes in Its total share in all India milk production is 6.60 percent. 20) There is an overall improvement of percent in milk production as compared to the base year in Maharashtra. 380

22 21) The share of Maharashtra in all India milk production has declined. In the year Maharashtra had 7.2 percent share in all India milk production which has gone down up to 6.60 percent in the year ) A comparison of decline in the percent share of Maharashtra in all India milk production with the base year shows that there is a net fall of 8.3 percent. 23) The per capita availability of milk in Maharashtra is 206 gms for the year ) Maharashtra shows a consistent improvement in the availability of milk per individual from 172 gms in the year to 206 gms in There is an improvement of 34 gms per individual in last ten years. 25) However, a comparison with national standard shows that Maharashtra has never been able to match up the national standard which is 290 gms per day in the year ) Procurement of milk in Maharashtra has improved from llpd in to llpd in ) Milk procurement in Maharashtra shows a net improvement of percent as compared to the base year ) The performance of government dairy is declining in Maharashtra. The milk procurement has reduced from llpd in to 1.62 llpd in There is a net fall of 90.9 percent from ) The performance of co-operative dairies has improved in Maharashtra. The milk procurement has increased from llpd in to llpd in There is a net improvement of percent from

23 30) The performance of private dairies is improving in Maharashtra. The milk procurement has increased from llpd in to llpd in There is a net improvement of percent from ) The distribution of milk in Maharashtra has improved from llpd in to llpd in It shows a net improvement of percent as compared to the base year ) The milk distribution by government dairies in Maharashtra has reduced from 11.1 llpd in to 1.47 llpd in There is a net fall of percent from ) The milk distribution by co-operative dairies has increased from llpd in to llpd in This exhibits is a net improvement of percent from ) The milk distribution by private dairies has increased from 53.3 llpd in to llpd in This shows that there is a net improvement of percent from ) The conversion of milk in Maharashtra has been very inconsistent. The milk conversion in Maharashtra has reduced from in 9.42 llpd in to 3.79 llpd in There is a net fall of 59.8 percent in milk conversion in Maharashtra as compared the base year ) The milk conversion by government dairies in Maharashtra has drastically reduced from 6.77 llpd in to 0.28 llpd in There is a net fall of 95.9 percent from ) The milk conversion by co-operative dairies has increased from 2.65 llpd in to 3.51 llpd in This exhibits a net improvement of 32.5 percent from

24 38) As of 2012 Maharashtra has 141 chilling centres with a combined capacity of llpd, 73 processing dairy with a combined capacity of llpd, 15 distribution depots with a combined capacity of 31 llpd and 8 SMP plants with a combined capacity of handling 171 llpd of milk. 39) Pune region is most successful in dairy development in Maharashtra with 41 chilling centres, 27 processing dairies and 6 distribution depots and 4 SMP plants. 40) The total population of milch cattle in Maharashtra has improved from in the year 1951 to in It shows a net improvement of percent as compared to the base year Summary of findings related to Co-operatives in India 1. Indian co-operative movement is numerically the largest movement in World. 2. In India, the co-operative form of organisation was brought in to existence in 1904 by the enactment of Co-operative Societies Act, Co-operatives as an instrument of socio-economic development have became 4. The National Cooperative Union of India, (NCUI) is the apex organisation representing the entire cooperative movement in the country. 5. There are 207 institutional members of NCUI. 6. In the year the total number of co-operatives at all level were 6,10,020. There were 1,47,991 credit and 4,58,068 non-credit co-operative societies registered in India. 7. Co-operatives cover 98 percent of the Indian villages. 383

25 8. There are 3,571 district level co-operatives, 390 state level co-operatives and 19 functional national level co-operative federations. 9. The total membership of co-operatives at all level is million divided between and 68.2 credit and non-credit co-operatives. 10. As of the total share capital of co-operatives at all level is Rs. 3,83,284.5 million with total working capital of Rs. 72,95,765.7 million, reserves with value of Rs. 7,48,934.1 million and deposits with approximate value of Rs. 47,40,588.6 million. 11. The number of co-operative societies has increased from thousands in to in The cumulative growth of co-operative societies taking as base year shows an overall growth of 93.5 percent. 13. The membership of co-operatives has increased from million in to millions in The cumulative growth of membership taking as base year shows an overall growth of 85.5 percent. 15. Co-operatives are present in all the sectors and play important role in economic development of India. 16. As of , 16.9 percent of agricultural credit was disbursed by cooperatives. 17. Co-operatives distributed 38.3 percent of kisan credit cards and 36 percent of fertilizer. 18. Also, 28.3 percent of fertilizer production, 39.7 percent of sugar production was done by co-operatives. 384

26 19. In the year , 24.8 percent of wheat procurement, 14.8 percent of paddy procurement and 7.85 percent of milk procurement was undertaken by the co-operatives. 20. Similarly, 45 percent of ice-cream manufacturing and 49 percent of oil -operatives. 21. Co-operatives show their presence in 54 percent of handloom units and 23 percent of fisheries units. 22. In addition, 15 percent of Arecanut marketing and 7.6 percent of salt manufacturing also comes under the credit of co-operatives. 23. Co-operatives presently employ approximately million peoples. 24. As per the reports of NCUI, co-operatives are providing employment to 38 percent of the people. 25. Operation flood is the most successful programme which was carried out by NDDB. 26. National Cooperative Dairy Federation of India (NCDFI) is the apex organization for the co-operative dairy sector in India. 27. In the year , membership of NCDFI has reached up to 25, paid-up capital has increased up to 8.08 million rupees and turnover has touched up to 22.7 million. 28. There are twenty one state co-operative dairy federations working under national co-operative dairy federation. 29. There are 198 district co-operative milk producers union functioning under state dairy federations. 385

27 30. There are 1.22 million primary milk producer co-operative societies under district co-operative unions. 31. As of there are 1,44,729 dairy co-operatives with a total membership of millions. 32. The total share capital of dairy co-operatives at all level is Rs million with total working capital of Rs. 21,270.4 million and reserves with value of Rs million. 33. The total milk procured by co-operatives in is 95,58,620 thousand litres. The total turnover by the co-operatives during this period is Rs. 1,44,838.9 millions. 34. The number of dairy co-operative societies has increased from 69.8 thousand in to thousand in The compound annual growth rate in terms of number of societies, taking as base year shows an overall growth of percent. 36. Uttar Pradesh has largest number of co-operative societies, 23,378 followed by Maharashtra with 21,541 and Gujarat with 17,025 number of co-operative societies in Bihar which is fifth in terms of number of dairy co-operative societies in India shows highest CAGR of 13,165.3 percent. 38. Uttar Pradesh stands second with percent of CAGR followed by Maharashtra with percent of CAGR in terms of co-operative societies. 39. The membership of dairy co-operative societies has increased from 8.99 millions in to millions in

28 40. The compound annual growth rate in terms of membership, taking as base year shows an overall growth of percent. 41. In the year , Gujrat has the largest number of producer members, 3234 thousand followed by Karnataka with 2297 thousand members and Tamil Nadu with 2202 thousand members. 42. Bihar which is on eighth position in respect of membership shows highest CAGR of 27,966.7 percent followed by Uttar Pradesh with CAGR of percent and Andhra Pradesh with CAGR of 2503 percent. 43. Gujarat which has the highest membership shows a CAGR of percent. 44. Milk procurement by co-operatives has improved from 10.3 mlpd in to mlpd in Co-operative dairies have shown a net improvement of percent in procurement of milk. 46. Gujarat continues to remain highest milk procuring state by co-operatives with 13,572 thousand kg of milk procurement per day. It is followed by Karnataka with daily milk procurement of 5161 thousand kg and Maharashtra with 3083 thousand kg per day. 47. In terms of CAGR, Bihar has registered the highest growth of 49,400 percent followed by Andhra Pradesh with CAGR of percent and Karnataka with percent. 48. States like Maharashtra, Rajasthan and Punjab had been able to secure CAGR greater than the national standard of percent. 49. The milk distribution by co-operatives has improved from 9.4 mlpd in year to mlpd in the year

29 50. The highest growth of 26.9 percent in milk distribution by co-operatives was registered in the year Co-operatives show a net improvement of percent in milk distribution taking as base year. 52. As of , Uttar Pradesh is the largest milk distributing state with a total milk marketing of 6154 tlpd followed by Gujarat with 4190 tlpd and Maharashtra with 4030 tlpd of milk distribution. 53. Taking as base year highest CAGR in milk distribution by cooperatives is achieved by Haryana that is percent, followed by Rajasthan with percent and in Punjab it has grown by percent. 54. Dairy co-operatives development is a successful programme of India. But the development is not balanced. Eastern states particularly have not performed well in dairy co-operative sector. 55. Dairy co-operatives in Maharashtra have increased from 718 in to in It shows a CAGR of percent. 57. In the year 2012 there were total 27,647 PDCS registered in Maharashtra out of which only percent that is 12,421 PDCS are functioning. 58. Pune is most successful in co-operative dairy development with percent of functional PDCS followed by Aurangabad with percent and Nasik with percent of functional primary dairy co-operative societies. 59. Only percent of DCS and 70 percent of TCS are presently functional in Maharashtra. 388

30 60. Pune has highest number of functional TDCS that is twenty followed by Nasik with 16 working TDCS and Aurangabad with 9 functional TDCS. 61. Nagpur has highest number of working DDCS that is five followed by Pune and Aurangabad with four functional DDCS. 62. Pune is most successful in dairy co-operative movement in Maharashtra. 63. As of March 2012 Maharashtra has 74 chilling centres with a joint capacity of llpd, 40 processing dairies with combined capacity of llpd, 14 distribution depots with united capacity of llpd and four SMP plants with pooled capacity of 120 llpd. 64. Pune has 36 chilling centres with the overall capacity of llpd, 22 processing dairies with the combined capacity of llpd, six distribution depots with total capacity of llpd and three SMP plants with entire capacity of 105 llpd. 65. Konkan region which officially includes Mumbai Metro Region has eight distribution depots with a combined capacity of 17 llpd. 66. The membership of dairy co-operatives in Maharashtra has improved from 871 thousand members in to 1800 thousand members in The compound annual growth of membership in Maharashtra is percent taking as base year. 68. Milk procurement by dairy co-operatives in Maharashtra has improved from llpd in to llpd in Taking as base year the net growth in milk procurement by cooperatives in Maharashtra is found to be percent. 389

31 70. Milk distribution by dairy co-operatives in Maharashtra has improved from llpd in to llpd in Taking as base year the net growth in milk distribution by cooperatives in Maharashtra is found to be percent. 72. Milk conversion by dairy co-operatives in Maharashtra has improved from 1.26 llpd in to 3.51 llpd in Taking as base year it was found that there is net improvement of percent in milk conversion by co-operative dairies in Maharashtra Objective-wise Findings Objectives in a research give direction to the study. It keeps the endeavor focused and helps in deriving the right information from the right source. Table 9.1 exhibits objective-wise findings of the present work. Table 9.1 Objective-wise findings S.No. Objectives Findings 1 To study general consumer behavior of people towards milk in MMR. a. The respondents were asked to select the features which affect their consumer behavior while purchasing milk. The features selected were appearance, colour, taste, aroma, freshness, texture and overall acceptance of the milk. It was found that 59.1 percent of the respondents did not look for any of these characteristic when they buy milk. b. Freshness of milk is the second ranked option with 50.5 percent score, followed by taste with 43.3 percent score, colour with

32 percent, appearance with 30.9 percent, texture 30.3 percent and aroma with 28.9 percent score. The last in rank is overall acceptance with 21.7 percent score. c. The respondents were asked to express their behaviour if their regular milk is not available. With 4.77 mean score going to other shop is the first preferred action by the respondents. d. Switching over to other brand has ranked second with 3.45 mean score. e. Buying of non branded milk ranks third followed by postponing the purchase with fourth rank. 2 perception towards marketing parameters for branded/nonbranded milk in MMR. f. The last option for the respondents is not buying the milk at all with 1.06 mean score. i. It was noticed that the most important factor or non branded milk is quality with 98.7 percent score. ii. It was followed by nutritional value with 94.3 percent score, availability with 90.6 percent and packaging with 90.3 percent score. iii. Other factors like reputation and price has scored 84.4 and 83 percent respectively. iv. Factors like brand name, varieties with 79.4 percent and 78.8 percent respectively are 391

33 much below in the list of perception of customers which affects their selection of milk. v. The least scored factors are personal bias and reference value with 68.6 and 65.9 percent respectively. vi. The result of hypothesis testing shows that there was no difference in the perceptions of the respondents belonging to different income groups towards various parameters which affects choice of branded or non branded milk. 3 To study performance of co-operative dairies in Mumbai metro region. vii. The result of hypothesis testing shows that the perception towards various marketing parameters which affects choice of branded or non branded milk varies across the age groups, occupational groups, geographical areas and number of family members. 1. The study of TOMA showed that Amul is the most remembered brand with 56.8 percent response followed by Gokul with 18.4 percent and Mahanand with 11.9 percent. 2. Area wise study shows that Amul is the most remembered brand in the areas of MCGM, KDMC, UMC, MBMC, BZMC and VVCMC with 56.5, 63.8, 100, 81.8, 83.3 and 77.8 percent respectively. 3. Whereas in TMC Gokul has attained the 392

34 highest TOMA with 64.3 percent and in NMMC Warna has managed highest level of awareness with 50 percent. 4. Amul is the most preferred milk brand with 49.2 percent response followed by Gokul, 20.4 percent and Mahanand by 18.9 percent. 5. Amul is the most preferred brand in the clusters of MCGM, KDMC, UMC, MBMC, BZMC and VVCMC with 47.9, 63.9, 56.3, 77.3, 91.7 and 69.4 percent respectively. 6. Gokul is the most preferred brand in TMC with 75 percent response and Warna is the most preferred brand in NMMC with 50 percent response. 7. The study shows that 39.6 percent of respondents purchase Amul milk, 26.3 percent purchased Gokul and 22.6 percent purchase Mahanand milk. 8. Out of 302 preferred responses for AMUL only 179 respondents are purchasing it, there is a difference of 123 respondents who would like to buy AMUL but because of some reason are buying some other brand. 9. Amul is the most purchased brand in MCGM, KDMC, BZMC and VVCMC with 27.08, 44.4, 66.7 and 52.8 percent response respectively 393